| Non-Tech : PFX | | PFX 45.00 | -2.3% | Dec 26 9:30 AM EST |
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cc rogers: Of course we will have to read the paperwork or see more news articles to determine the exact terms and conditions of the agreement. Generally -- and this is only my opinion, and I am no expert-- there's a collar around the amount of combined dollars and stock that PFX shareholders would receive when the deal closes (assuming it closes). That is, if Reliastar stock should, for example, double from now until closing, then the amount of Reliastar stock that PFX shareholders would receive would not be in the ratio 1/2 share to each PFX share as we see now; but instead it would be much less (like 1/4 share for each PFX share, or perhaps a little less than .5/sh but much less cash). In other words, the deal is going to be around $37 1/2 (cash + RLR stock) plus or minus some small amount as defined in the terms and conditions of the agreement.
Again, IMO, because there is some uncertainty as to the exact amount, the exact closing date, and the certainty of the deal, PFX stock will trade at a level discounting the $37 1/2. So perhaps maybe 10-20% or
maybe we'll soon see PFX somewhere about $30-33.75. That'd be my GUESS. I base this on other stocks I own in which I specifically am investing to capture the difference between the current market price and the price at the close of the deal. There's a thread which discusses many of these deals - esp. and primarily, those which are all cash
Subject 28578
For me, I'll look a little more closely at RLR before I decide to either sell out now (at the discount price) or follow the deal through and then make another decision either to exit or to hold on to RLR stock. RLR at first glance seems fully or fairly valued to me. I believe I've seen articles though that have indicated that RLR itself is a potential takeover target. |
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